A Brief Introduction About the Hosting Agreement
Hosting agreement is a legal document that is entered by two parties, namely, website hosting company and the customer. The terms of a hosting agreement specify the rights and obligations of both parties. These terms govern the relationship between the parties. In other words, the parties to an agreement are bound by it.
So it is essential that an agreement must include precise information as to the services offered including any auxiliary services. Email services, domain hosting services, SSL certificate, and domain name services are a few types of additional services offered by the company.
Who Takes the Hosting Agreement – People Involved
The parties to the agreement are usually the company that is offering website hosting services and the customer (who may be an individual or organization) accepting and hiring the services.
But for the validity of the agreement, the parties signing it must be competent to do so. Further, a hosting agreement with a company that is reselling the services of another company must comply with parent agreement.
Purpose of a Hosting Agreement
The purpose of this agreement is to create a long and harmonious relationship between the website hosting Service Company and the customer. The most common web-host templates relating to hosting agreement are Website Hosting agreement, Hosting service agreement, hosting service Terms and conditions and Website hosting T&C. The difference between hosting service and website hosting templates lies in the services provided by the company. When the hosting company offers the customer to use the hosting site at his discretion, a hosting service agreement will be suitable. On the other hand, when the website hosting company retains the capacity to host the website on behalf of the customer, website hosting agreements will be suitable.
Contents of the Hosting Agreement – Inclusion
The basic requirement for any agreement to be enforceable by law it must include an offer, acceptance of offer, and consideration. Similarly, a hosting agreement to be valid must include basic requirements of an agreement. Having this agreement in place will protect intellectual property and also minimizes the disputes between the parties. This agreement includes hosting definition and meaning of terms used in the agreement for a better understanding of the parties involved in it.
Key terms of an agreement are as follows:
- Term period is that the commencement as well as termination
- The obligation of the hosting company regarding hosting services, availability of services, maintenance of services, and also the obligation of the customer as to payment, lawful use of services and etc.
- Rights as to intellectual property
- Charges and payments: issues of the invoice, payment within the prescribed time frame, payment of taxes, and variation of charges.
- Protection of each other confidential information
How to Draft the Hosting Agreement
A hosting agreement is entered by the parties to know and understand the nature of the service, their rights, and obligation. So it is necessary to keep it simple and specific. Further, before drafting a hosting agreement, answer the question as to who are the parties, their name, location, and purpose of the agreement. A clear idea to the above – mentioned question will help in drafting a hosting agreement suitable for the parties. Use facts to support your claim and sound professional while negotiation. Remember a hosting agreement is for the mutual benefit of both parties, so it is important to end the discussion on a positive note.
Negotiation Strategy
The simple strategy to be followed while negotiating a hosting agreement is to know one’s priority. Having a clear picture as to what is important in the agreement saves time and energy during negotiating. Doing adequate research is a sound strategy for negotiation. Question the party and know the reason behind each clause.
Benefits and Drawbacks of the Hosting Agreement
Benefits:
- Hosting the main agreement advantage is that it provides a clear set of terms to be followed by both the parties to the agreement.
- These set of terms reduces the chance of disputes or problems, and even in case of dispute, it offers a way of resolution.
Drawbacks:
- This agreement is based on the type of service offered can prove to be a disadvantage for certain customers.
- This agreement offering dedicated server hosting is expensive for a small-time business. Agreement stands for only for a fixed period, in case you would like to renew it has to be done by mutual consent.
What Happens in Case of Violation?
The procedure to be followed in case of breach is clear and precise. When drafting a hosting agreement inclusive of a termination clause is mandatory. This clause clearly states the action that follows a breach. The violation of the agreement commonly arises when the parties fail to fulfil their respective obligations. When you enter into a contract, you are lawfully obligated to execute your contractual duties.
Some of the other reasons where there would be violation could be
- When a party refuses to perform its potentials under the contract
- When a party does somewhat that the contract forbids
- When a party stops the other party from functioning its duties under the contract.
An agreement is a legal document that binds the party to the rights and obligations stated in it. When drafting care must be taken to ensure all required terms are included. So consulting a trained and qualified legal advisory for drafting and negotiating an agreement is recommended. Accomplished Hosting plans, will give you everything and all of the assistance of having your own Dedicated and VPS Server; however, it would accomplish the server for the customer as well as setting up the control panel, repairing series and back-ups.
[Also Read: Website Construction Service Agreement]
Sample for Hosting Agreement
A sample of the agreement can be downloaded from below.
